AeroVironment (NASDAQ:AVAV) Shares Gap Up on Earnings Beat

AeroVironment, Inc. (NASDAQ:AVAV) shares gapped up prior to trading on Tuesday after the company announced better than expected quarterly earnings. The stock had previously closed at $139.00, but opened at $176.50. AeroVironment shares last traded at $170.8470, with a volume of 2,601,549 shares traded.

The aerospace company reported $1.84 earnings per share for the quarter, beating analysts’ consensus estimates of $1.47 by $0.37. AeroVironment had a negative net margin of 13.93% and a positive return on equity of 3.28%. The business had revenue of $641.62 million during the quarter, compared to the consensus estimate of $555.97 million. During the same quarter in the prior year, the firm posted $1.61 EPS. The company’s revenue for the quarter was up 133.3% compared to the same quarter last year. AeroVironment has set its FY 2027 guidance at 3.020-3.340 EPS.

Trending Headlines about AeroVironment

Here are the key news stories impacting AeroVironment this week:

• Positive Sentiment: AeroVironment delivered a strong Q4 earnings beat, with revenue and profit both topping estimates and revenue rising 133% year over year. AeroVironment (AVAV) Q4 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Management highlighted record bookings and a $1.2 billion funded backlog, suggesting sustained demand for AeroVironment’s defense products. AeroVironment soars 17% on earnings beat, backlog grows to $1.2 billion
• Positive Sentiment: Analysts and market commentary turned more bullish after the report, with BTIG reaffirming a buy rating and citing meaningful upside. Benzinga report on BTIG rating
• Neutral Sentiment: Fiscal 2027 guidance was solid but appeared below some analyst expectations, which may limit follow-through if growth slows. AeroVironment’s (NASDAQ:AVAV) Q1 CY2026 Sales Top Estimates, Stock Jumps 11.9%
• Negative Sentiment: Multiple law firms are advertising a securities fraud class action tied to earlier disclosures, adding an overhang for investors. AVAV Notification: AeroVironment Accused of Misrepresentations about its SCAR Contract Cancellation in Securities Fraud Class Action

Analyst Ratings Changes

AVAV has been the subject of a number of research reports. BTIG Research reissued a “buy” rating and issued a $205.00 price objective on shares of AeroVironment in a research note on Tuesday. Zacks Research raised AeroVironment from a “strong sell” rating to a “hold” rating in a report on Monday, May 4th. Jefferies Financial Group lowered their target price on shares of AeroVironment from $390.00 to $305.00 and set a “buy” rating for the company in a report on Thursday, March 12th. Robert W. Baird reduced their price objective on shares of AeroVironment from $260.00 to $235.00 and set an “outperform” rating for the company in a research report on Wednesday, March 11th. Finally, Canaccord Genuity Group decreased their price objective on shares of AeroVironment from $330.00 to $300.00 and set a “buy” rating for the company in a research note on Thursday, March 12th. Two analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $293.94.

Insider Activity

In related news, Director Stephen F. Page sold 250 shares of the business’s stock in a transaction on Monday, June 15th. The stock was sold at an average price of $174.41, for a total transaction of $43,602.50. Following the sale, the director directly owned 49,001 shares in the company, valued at approximately $8,546,264.41. The trade was a 0.51% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 750 shares of company stock worth $133,502 in the last quarter. Corporate insiders own 0.81% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. ARK Investment Management LLC raised its position in AeroVironment by 28.9% during the third quarter. ARK Investment Management LLC now owns 400,457 shares of the aerospace company’s stock valued at $126,100,000 after purchasing an additional 89,697 shares in the last quarter. F m Investments LLC purchased a new stake in shares of AeroVironment during the fourth quarter valued at approximately $1,775,000. Norges Bank bought a new stake in AeroVironment in the 4th quarter worth $94,655,000. Geode Capital Management LLC increased its holdings in AeroVironment by 8.8% during the 4th quarter. Geode Capital Management LLC now owns 884,395 shares of the aerospace company’s stock valued at $213,956,000 after purchasing an additional 71,903 shares during the period. Finally, Mitsubishi UFJ Asset Management Co. Ltd. raised its holdings in shares of AeroVironment by 92.2% during the fourth quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 20,173 shares of the aerospace company’s stock valued at $5,168,000 after acquiring an additional 9,675 shares in the last quarter. 86.38% of the stock is currently owned by institutional investors.

AeroVironment Stock Up 23.6%

The company has a current ratio of 5.51, a quick ratio of 4.54 and a debt-to-equity ratio of 0.17. The company’s fifty day simple moving average is $176.65 and its 200 day simple moving average is $225.20. The firm has a market capitalization of $8.58 billion, a P/E ratio of -39.41, a price-to-earnings-growth ratio of 1.89 and a beta of 1.35.

About AeroVironment

AeroVironment, Inc (NASDAQ:AVAV) is a technology company specializing in unmanned aerial systems (UAS), tactical missiles and precision loitering munitions, electric vehicle charging and scalable energy systems. Headquartered in Monrovia, California, the company develops solutions for defense, public safety and commercial markets. Their offerings include small UAS for intelligence, surveillance and reconnaissance, as well as advanced weapons systems designed to meet the needs of modern military operations.

The company’s unmanned aerial systems portfolio features platforms such as the Raven, Puma and Switchblade series, which are deployed by the U.S.